Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow.

Eastside Westside Total Clients 25,000 6,250 31,250 Revenues $ 540,000 $ 360,000 $ 900,000 Staff hours 8,100 2,700 10,800 Staff costs $ 99,000 $ 162,000 $ 261,000 General operating costs $ 540,000 Required: Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center?

Required:

Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs.

Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center?

Complete this question by entering your answers in the tabs below.

• Required A
• Required B

Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs.

Note: Round your answer to 2 decimal places.

Predetermined overhead rate per client

Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center?

CenterSurplusEastside Westside